WeWork Cos., the world’s most valuable co-working space startup, has just sealed a $430 million USD pay packet to fuel their expansion across Asia’s fastest growing innovation hubs.
The investment was led by Chinese investors, and will help the US-based company open centers in several countries including China, South Korea and Japan. The latest funding values the company at $16 billion USD, up from the $10 billion USD following their last round in June 2015.
The financing was led by Beijing-based Hony Capital and parent company Legend holdings. According to filings submitted by the company on Tuesday, the company has allocated up to $780 million USD worth of shares for possible sale as part of the latest financing round.
“The quality of [WeWork’s] execution and fit for the Chinese culture is unparalleled,” said Hony Capital CEO John Zhao. “Our investment in WeWork is both strategic and obvious.”
Appetite for modern working spaces has accelerated over the past year in China. Both public and private projects have cropped up to fill the need for sophisticated offices, catering to China’s burgeoning startup ecosystem. In Beijing, the government has subsidized spaces in some of the most highly sought after areas in the city, attempting to centralize the city’s creative spaces.
WeWork has about 50,000 members worldwide according to a blog post released on Wednesday by company founder Adam Neumann.
“We started WeWork to support small businesses and entrepreneurs, but our intention since the beginning has always been more holistic,” said Mr Neumann.
Image Credit: WeWork
Update (3/13/16 16:18): This post has been updated to correct a typo. WeWork received $430 million USD, not $430 billion USD, in funding.